Super Top Up Insurance Flashcards
What is the difference between Super Top Up insurance and top up insurance?
Traditionally, top-up plans are for a single, catastrophic, high-cost event, while super top-ups are for getting additional sum insured for multiple events that may not be catastrophic,”
Both these plans work on the premise that a deductible limit has to be crossed for these to be activated. So, if you have a super top-up plan of Rs.20 lakh with a deductible limit of Rs.5 lakh, you will have to pay Rs.5 lakh either from your own pocket or through a base cover, before the super top-up can be used. In a top-up plan, you need to cross the deductible limit in a single hospitalisation, while for a super top-up, multiple hospitalisation bills in a policy year can be added to calculate the deductible limit. So if you incur two hospital bills of Rs.4 lakh and Rs.7 lakh in a policy year, a top-up plan will not pay the first claim, only the second one. In a super top-up, both the claims will be covered as the combined bill of Rs.11 lakh in a year exceeds the Rs.5 lakh limit.
How can super top up help to save premiums?
One can buy a Rs.3-5 lakh base plan and a Rs.25-30 lakh super top-up plan, instead of a high base plan of Rs.30-35 lakh which will cost more
Why are premiums low for super top up?
Premiums are low for super top up not only because of the high deductible, but also because it may lack features like OPD cover, wellness benefits, cumulative bonus, etc,
What are the points to be considered while buying a super top up plan?
1) cashless claim reimbursement - It’s important to buy both the base and super top-up plans from the same insurer to ensure cashless reimbursement.
2) Pick the base and super top-up plans from a company that has similar features for both because if you don’t, you may end up with a super top-up that doesn’t cover all the services, forcing you to pay from your pocket.
3) long term policy - If you choose a 2- or 3-year plan, instead of a one-year plan, you will not only get a discount, but the aggregate claims for 2/3 years will be considered for the deductible limit.
When not to buy a super top up?
Reconsider if base plan has restore option
If you have a big base plan, with the sum insured fully restored in a policy year, reconsider the size of the super top-up cover you should buy, or whether you should buy it at all. The restore benefit can easily provide an optimum cover size and also come at a lesser cost. Check, however, that the restore benefit applies to recurrence of same illnesses. If the base plan is small, do buy a larger top-up plan.
